<div class="layui-tab layui-tab-card">
    <ul class="layui-tab-title">
        <li class="layui-this"><i class='fa fa-edit'></i> AP Walkthrough</li>
        <li class="">Exhibits</li>
        <li class="">Help</li>
        <li class="fr"><i class='fa fa-check-square-o'></i> Solution</li>
    </ul>
    <div class="layui-tab-content" >
        <div class="layui-tab-item layui-show">
            <b >Scroll down to complete all parts of this task.</b><br/><br/>
            A CPA firm is engaged to conduct the Year 2 audit of Blossom Macarons Co.  During the planning phase of the audit, the audit team has determined that the Accounts Payable process is material to the financial statements.  An audit staff has pulled the prior year (Year 1) documentation for the process and retrieved preliminary supporting documentation from the client as part of a roll forward request list. <br>
            <br>
            Prior to conducting the Year 2 walkthrough, you, as the audit senior on this engagement, are responsible for reviewing the prior year Accounts Payable walkthrough documentation along with the provided walkthrough support located in the Exhibits tab to obtain an understanding of the process and determine whether any updates are needed for the current year. <br>
            <br>
            To revise the Accounts Payable walkthrough documentation, click on each segment of underlined text below and select the needed correction, if any, from the list provided.  If the underlined text is already correct and does not need to be updated, select [Original text] from the list.  If removal of the underlined text is the best revision, select [Delete text] from the list.<br>
            <br>
            <br>
            <strong>Walkthrough Template</strong>

            <hr> <strong>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;</strong>&nbsp;

            <table border="0" cellpadding="0" cellspacing="0">
                <tbody>
                    <tr>
                        <td style="height:18px; white-space:nowrap; width:450px">Company:</td>
                        <td style="height:18px; width:346px">Blossom Macarons Co.</td>
                    </tr>
                    <tr>
                        <td style="height:18px; width:380px">Financial Statement Date:</td>
                        <td style="height:18px; width:346px">December 31, Year 1</td>
                    </tr>
                    <tr>
                        <td style="height:18px; width:380px">Walkthrough Process:</td>
                        <td style="height:18px; width:346px">Accounts Payable</td>
                    </tr>
                </tbody>
            </table>
            <br>
            <strong>Documentation of Walkthrough Procedures Performed:</strong>

            <table border="1" cellpadding="2" cellspacing="0">
                <tbody>
                    <tr>
                        <td style="white-space:nowrap">Transaction selected for walkthrough:</td>
                        <td>Vendor: Flour, Inc.&nbsp; Date: June 8, Year 1</td>
                    </tr>
                    <tr>
                        <td>Individuals we talked with to confirm our understanding: &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</td>
                        <td>O. James, Accounts Payable Lead &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;</td>
                    </tr>
                </tbody>
            </table>
            <br>
            <strong>Documentation of Our Understanding of Accounts Payable Process:</strong><br>
            The client provided a flowchart of its processes, which is attached to this documentation. &nbsp;Refer to Exhibit A.<br>
            <br>
            <u>Initiation</u><br>
            <br>
            The process begins when the Accounts Payable (A/P) Lead receives a payment request along with an approved voucher package.  The approved voucher package includes a copy of the purchase order, receiving report, and invoice along with a signed approval for the payment request. <br>
            <br>
            <u>Authorization</u><br>
            <br>
            Upon receiving the payment request and approved voucher package, the A/P Lead reviews the payment request 

            <span class="parent mbg {if condition='isset($log.1)'}xbg{/if}">{if condition='isset($log.1) && $log.1.topic_v eq 2'}<s>{/if}to validate that the vendor is set up on the A/P system{if condition='isset($log.1) && $log.1.topic_v eq 2'}</s>{/if}</span>
            <form class="layui-form" id='form' action="{:url('index/form')}" method="post" style="display:none;">
                <blockquote class="layui-elem-quote layui-quote-nm">
                    <b class="b">Choose an option below:</b><hr>
                    <div class="layui-form-item">
                        <div class="layui-input-block">
                            
                            <input type="radio" name="topic_t[1]" value="1" {if condition='isset($log.1) && $log.1.topic_v eq 1'}checked{/if} title="<em>[Original text]</em> <em class='span'>to validate that the vendor is set up on the A/P system</em>" ><br/>
                            <input type="radio" name="topic_t[1]" value="2" {if condition='isset($log.1) && $log.1.topic_v eq 2'}checked{/if} title="[Delete Text]"><br/>
                            <input type="radio" name="topic_t[1]" value="3" {if condition='isset($log.1) && $log.1.topic_v eq 3'}checked{/if} title="<em class='span'>to validate that the individual approving the request is an independent third party</em>" ><br/>
                            <input type="radio" name="topic_t[1]" value="4" {if condition='isset($log.1) && $log.1.topic_v eq 4'}checked{/if} title="<em class='span'>to validate that the payment request is properly authorized by the appropriate individual and within the authorization limit</em>"><br/>
                            <input type="radio" name="topic_t[1]" value="5" {if condition='isset($log.1) && $log.1.topic_v eq 5'}checked{/if} title="<em class='span'>to validate that the payment request amount is consistent on the purchase order, receiving report, and invoice</em>" ><br/>
                        </div>
                    </div>
                    <div class="layui-btn-group">
                        <a class="layui-btn layui-btn-disabled res">Reset</a>
                        <a class="layui-btn cancel layui-btn-warm" >Cancel</a>
                        <button class="layui-btn layui-btn-normal {if condition='!isset($log.1)'}layui-btn-disabled{/if} submit">Accept</button>
                    </div>
                </blockquote>
            </form>
            (Key Control No. 1). &nbsp;Refer to Exhibit B. &nbsp;For example, since the transaction selected for walkthrough was a purchase order initiated by 

            <span class="parent mbg {if condition='isset($log.2)'}xbg{/if}">{if condition='isset($log.2) && $log.2.topic_v eq 2'}<s>{/if}the Ingredients cost center, the payment request should have been authorized by Harrison Brown.{if condition='isset($log.2) && $log.2.topic_v eq 2'}</s>{/if}</span>
            <form class="layui-form" id='form' action="{:url('index/form')}" method="post" style="display:none;">
                <blockquote class="layui-elem-quote layui-quote-nm">
                    <b class="b">Choose an option below:</b><hr>
                    <div class="layui-form-item">
                        <div class="layui-input-block">
                            
                            <input type="radio" name="topic_t[2]" value="1" {if condition='isset($log.2) && $log.2.topic_v eq 1'}checked{/if} title="<em>[Original text]</em> <em class='span'> the Ingredients cost center, the payment request should have been authorized by Harrison Brown.</em>" ><br/>
                            <input type="radio" name="topic_t[2]" value="2" {if condition='isset($log.2) && $log.2.topic_v eq 2'}checked{/if} title="[Delete Text]"><br/>
                            <input type="radio" name="topic_t[2]" value="3" {if condition='isset($log.2) && $log.2.topic_v eq 3'}checked{/if} title="<em class='span'>the Equipment cost center, the payment request should have been authorized by Jess Bishop.</em>" ><br/>
                            <input type="radio" name="topic_t[2]" value="4" {if condition='isset($log.2) && $log.2.topic_v eq 4'}checked{/if} title="<em class='span'>the Machinery cost center, the payment request should have been authorized by Harrison Brown.</em>"><br/>
                            <input type="radio" name="topic_t[2]" value="5" {if condition='isset($log.2) && $log.2.topic_v eq 5'}checked{/if} title="<em class='span'>the Ingredients cost center, the payment request should have been authorized by Jacque Holmes.</em>" ><br/>
                        </div>
                    </div>
                    <div class="layui-btn-group">
                        <a class="layui-btn layui-btn-disabled res">Reset</a>
                        <a class="layui-btn cancel layui-btn-warm" >Cancel</a>
                        <button class="layui-btn layui-btn-normal {if condition='!isset($log.2)'}layui-btn-disabled{/if} submit">Accept</button>
                    </div>
                </blockquote>
            </form><br>
            <br>
            If the vendor is not set up in the A/P system, the A/P Clerk needs to set up the vendor in the system.&nbsp; System roles, such as access for setting up a vendor, are controlled by system security and are limited to selected personnel (Key Control No. 2).&nbsp; 

            <span class="parent mbg {if condition='isset($log.3)'}xbg{/if}">{if condition='isset($log.3) && $log.3.topic_v eq 2'}<s>{/if}Key Control No. 2 is an IT General Control, which will be tested by our Information Technology Team.{if condition='isset($log.3) && $log.3.topic_v eq 2'}</s>{/if}</span>
            <form class="layui-form" id='form' action="{:url('index/form')}" method="post" style="display:none;">
                <blockquote class="layui-elem-quote layui-quote-nm">
                    <b class="b">Choose an option below:</b><hr>
                    <div class="layui-form-item">
                        <div class="layui-input-block">
                            
                            <input type="radio" name="topic_t[3]" value="1" {if condition='isset($log.3) && $log.3.topic_v eq 1'}checked{/if} title="<em>[Original text]</em> <em class='span'> Key Control No. 2 is an IT General Control, which will be tested by our Information Technology Team.</em>" ><br/>
                            <input type="radio" name="topic_t[3]" value="2" {if condition='isset($log.3) && $log.3.topic_v eq 2'}checked{/if} title="[Delete Text]"><br/>
                            <input type="radio" name="topic_t[3]" value="3" {if condition='isset($log.3) && $log.3.topic_v eq 3'}checked{/if} title="<em class='span'>Key Control No. 2 is an IT Application Control, which will be tested by our Information Technology Team.</em>" ><br/>
                            <input type="radio" name="topic_t[3]" value="4" {if condition='isset($log.3) && $log.3.topic_v eq 4'}checked{/if} title="<em class='span'>Key Control No. 2 is an IT Infrastructure Control, which will be tested by our Information Technology Team.</em>"><br/>
                            <input type="radio" name="topic_t[3]" value="5" {if condition='isset($log.3) && $log.3.topic_v eq 5'}checked{/if} title="<em class='span'>Key Control No. 2 is an IT Security Control, which will be tested by our Information Technology Team.</em>" ><br/>
                        </div>
                    </div>
                    <div class="layui-btn-group">
                        <a class="layui-btn layui-btn-disabled res">Reset</a>
                        <a class="layui-btn cancel layui-btn-warm" >Cancel</a>
                        <button class="layui-btn layui-btn-normal {if condition='!isset($log.3)'}layui-btn-disabled{/if} submit">Accept</button>
                    </div>
                </blockquote>
            </form><br>
            <br>
            On a monthly basis, an accounting manager reviews all new vendor setups by comparing the new vendor documentation, which is kept in a binder by the A/P Clerk, to a Tartar (Blossom Macaron Co.'s General Ledger system) report. &nbsp;The review is then signed off by the accounting manager (Control No. 3). &nbsp;

            <span class="parent mbg {if condition='isset($log.4)'}xbg{/if}">{if condition='isset($log.4) && $log.4.topic_v eq 2'}<s>{/if}This control is a preventive control that prevents unauthorized vendors from receiving payment.{if condition='isset($log.4) && $log.4.topic_v eq 2'}</s>{/if}</span>
            <form class="layui-form" id='form' action="{:url('index/form')}" method="post" style="display:none;">
                <blockquote class="layui-elem-quote layui-quote-nm">
                    <b class="b">Choose an option below:</b><hr>
                    <div class="layui-form-item">
                        <div class="layui-input-block">
                            
                            <input type="radio" name="topic_t[4]" value="1" {if condition='isset($log.4) && $log.4.topic_v eq 1'}checked{/if} title="<em>[Original text]</em> <em class='span'> This control is a preventive control that prevents unauthorized vendors from receiving payment.</em>" ><br/>
                            <input type="radio" name="topic_t[4]" value="2" {if condition='isset($log.4) && $log.4.topic_v eq 2'}checked{/if} title="[Delete Text]"><br/>
                            <input type="radio" name="topic_t[4]" value="3" {if condition='isset($log.4) && $log.4.topic_v eq 3'}checked{/if} title="<em class='span'>This control is a preventive control that prevents employees from setting up unauthorized vendors.</em>" ><br/>
                            <input type="radio" name="topic_t[4]" value="4" {if condition='isset($log.4) && $log.4.topic_v eq 4'}checked{/if} title="<em class='span'>This control is a detective control that provides assurance that unauthorized vendor setups are discovered and corrected on a timely basis.</em>"><br/>
                            <input type="radio" name="topic_t[4]" value="5" {if condition='isset($log.4) && $log.4.topic_v eq 5'}checked{/if} title="<em class='span'>This control is a physical control for safeguarding assets that ensures the Tartar system is properly safeguarded.</em>" ><br/>
                        </div>
                    </div>
                    <div class="layui-btn-group">
                        <a class="layui-btn layui-btn-disabled res">Reset</a>
                        <a class="layui-btn cancel layui-btn-warm" >Cancel</a>
                        <button class="layui-btn layui-btn-normal {if condition='!isset($log.4)'}layui-btn-disabled{/if} submit">Accept</button>
                    </div>
                </blockquote>
            </form><br>
            <br>
            Once the vendor has been set up, the A/P Lead then inputs the invoices into Tartar via an A/P batch mode.&nbsp; Once the data has been entered into Tartar, the A/P Lead will then create an Excel Batch Summary spreadsheet and compare the total on the Batch spreadsheet to the A/P Tartar batch total.&nbsp; The A/P Lead then forwards the batch backup to the Accounting Manager, who reviews the totals and payees.&nbsp; If everything in the batch is satisfactory, the Accounting Manager releases the batch and returns the backup to the A/P Lead; otherwise, the packet is returned to the A/P Lead for corrections.<br>
            <br>
            If the payment method is by check, the A/P Lead runs the check cycle reports in Tartar to create a check register and check file.&nbsp; The file is delivered to Blossom Macaron Co.'s check printing website. &nbsp;The A/P Lead 

            <span class="parent mbg {if condition='isset($log.5)'}xbg{/if}">{if condition='isset($log.5) && $log.5.topic_v eq 2'}<s>{/if}then supplies an independent third party with the backup information. From here, this party{if condition='isset($log.5) && $log.5.topic_v eq 2'}</s>{/if}</span>
            <form class="layui-form" id='form' action="{:url('index/form')}" method="post" style="display:none;">
                <blockquote class="layui-elem-quote layui-quote-nm">
                    <b class="b">Choose an option below:</b><hr>
                    <div class="layui-form-item">
                        <div class="layui-input-block">
                            
                            <input type="radio" name="topic_t[5]" value="1" {if condition='isset($log.5) && $log.5.topic_v eq 1'}checked{/if} title="<em>[Original text]</em> <em class='span'>  then gathers the batch backup information. From here, the A/P Lead</em>" ><br/>
                            <input type="radio" name="topic_t[5]" value="2" {if condition='isset($log.5) && $log.5.topic_v eq 2'}checked{/if} title="[Delete Text]"><br/>
                            <input type="radio" name="topic_t[5]" value="3" {if condition='isset($log.5) && $log.5.topic_v eq 3'}checked{/if} title="<em class='span'>then supplies the treasurer with the batch backup information. From here, the treasurer</em>" ><br/>
                            <input type="radio" name="topic_t[5]" value="4" {if condition='isset($log.5) && $log.5.topic_v eq 4'}checked{/if} title="<em class='span'>then supplies an independent third party with the backup information. From here, this party</em>"><br/>
                            <input type="radio" name="topic_t[5]" value="5" {if condition='isset($log.5) && $log.5.topic_v eq 5'}checked{/if} title="<em class='span'>then supplies the vendor with the backup information. From here, the A/P Lead</em>" ><br/>
                        </div>
                    </div>
                    <div class="layui-btn-group">
                        <a class="layui-btn layui-btn-disabled res">Reset</a>
                        <a class="layui-btn cancel layui-btn-warm" >Cancel</a>
                        <button class="layui-btn layui-btn-normal {if condition='!isset($log.5)'}layui-btn-disabled{/if} submit">Accept</button>
                    </div>
                </blockquote>
            </form> logs onto the company's check printing website and prints the checks.&nbsp; He then verifies the check numbers and total checks to the check register and to the check-request backup.Lastly, the checks are mailed to the vendor and the backup support is filed.&nbsp;<br>
            <br>
            <u>Reconciliation</u><br>
            <br>
            On a monthly basis, an accounting clerk conducts a reconciliation

            <span class="parent mbg {if condition='isset($log.6)'}xbg{/if}">{if condition='isset($log.6) && $log.6.topic_v eq 2'}<s>{/if}using the reconciliation file generated by the bank.{if condition='isset($log.6) && $log.6.topic_v eq 2'}</s>{/if}</span>
            <form class="layui-form" id='form' action="{:url('index/form')}" method="post" style="display:none;">
                <blockquote class="layui-elem-quote layui-quote-nm">
                    <b class="b">Choose an option below:</b><hr>
                    <div class="layui-form-item">
                        <div class="layui-input-block">
                            
                            <input type="radio" name="topic_t[6]" value="1" {if condition='isset($log.6) && $log.6.topic_v eq 1'}checked{/if} title="<em>[Original text]</em> <em class='span'> using the reconciliation file generated by the bank.</em>" ><br/>
                            <input type="radio" name="topic_t[6]" value="2" {if condition='isset($log.6) && $log.6.topic_v eq 2'}checked{/if} title="[Delete Text]"><br/>
                            <input type="radio" name="topic_t[6]" value="3" {if condition='isset($log.6) && $log.6.topic_v eq 3'}checked{/if} title="<em class='span'>using the reconciliation file generated by Tartar.</em>" ><br/>
                            <input type="radio" name="topic_t[6]" value="4" {if condition='isset($log.6) && $log.6.topic_v eq 4'}checked{/if} title="<em class='span'>using the reconciliation file from the prior month.</em>"><br/>
                            <input type="radio" name="topic_t[6]" value="6" {if condition='isset($log.6) && $log.6.topic_v eq 5'}checked{/if} title="<em class='span'>using the reconciliation file generated using the backup support.</em>" ><br/>
                        </div>
                    </div>
                    <div class="layui-btn-group">
                        <a class="layui-btn layui-btn-disabled res">Reset</a>
                        <a class="layui-btn cancel layui-btn-warm" >Cancel</a>
                        <button class="layui-btn layui-btn-normal {if condition='!isset($log.6)'}layui-btn-disabled{/if} submit">Accept</button>
                    </div>
                </blockquote>
            </form>&nbsp; This reconciliation file is compared against the General Ledger balance in Tartar.&nbsp; Variances between the two sources are investigated for appropriateness.&nbsp; This reconciliation is reviewed by an accounting manager (Key Control No. 4). &nbsp;Refer to Exhibit C.<br>
            &nbsp;
            <hr>
            <p>&nbsp;</p>
            
            
            <!--<span class="parent mbg ">using the reconciliation file generated by the bank.</span>
            <form class="layui-form" id='form' action="{:url('index/form')}" method="post" style="display:none;">
                <blockquote class="layui-elem-quote layui-quote-nm">
                    <b class="b">Choose an option below:</b><hr>
                    <div class="layui-form-item">
                        <div class="layui-input-block">
                            <input type="radio" name="topic_t[6]" value="1"  title="<em>[Original text]</em> <em class='span'> using the reconciliation file generated by the bank.</span>" ><br/>
                            <input type="radio" name="topic_t[6]" value="2"  title="[Delete Text]"><br/>
                            <input type="radio" name="topic_t[6]" value="3"  title="<em class='span'>using the reconciliation file generated by Tartar.</span>" ><br/>
                            <input type="radio" name="topic_t[6]" value="4"  title="<em class='span'>using the reconciliation file from the prior month.</span>"><br/>
                            <input type="radio" name="topic_t[6]" value="6"  title="<em class='span'>using the reconciliation file generated using the backup support.</span>" ><br/>
                        </div>
                    </div>
                    <div class="layui-btn-group">
                        <a class="layui-btn layui-btn-disabled res">Reset</a>
                        <a class="layui-btn cancel layui-btn-warm" >Cancel</a>
                        <button class="layui-btn layui-btn-normal layui-btn-disabled submit">Accept</button>
                    </div>
                </blockquote>
            </form>-->
            
        </div>

        <div class="layui-tab-item" style="width:100%;height:100%;">
            <div class="layui-btn-group clear click">
                <button class="layui-btn" data-link="/static/js/pdf/viewer.html?file={:urlencode($Request.domain.'/static/pdf/1-1.pdf')}">Exhibit A - Process Flowchart</button>
                <button class="layui-btn" data-link="/static/js/pdf/viewer.html?file={:urlencode($Request.domain.'/static/pdf/1-2.pdf')}">Exhibit B - Authorized Personnel Listing</button>
                <button class="layui-btn" data-link="/static/js/pdf/viewer.html?file={:urlencode($Request.domain.'/static/pdf/1-3.pdf')}">Exhibit C - Reconciliation</button>
            </div>

            <p class='pdf_title'>Exhibit A - Process Flowchart</p>

            <div class='ifram_head'>
                <iframe frameborder="no" border="0" marginwidth="0" marginheight="0" src="/static/js/pdf/viewer.html?file={:urlencode($Request.domain.'/static/pdf/1-1.pdf')}"></iframe>
            </div>

        </div>
        <div class="layui-tab-item">
            {include file="public/help" /}
        </div>
        <div class="layui-tab-item">

            <button class="layui-btn fa fa-print print" onclick="$('#print').jqprint();" ></button>
            <div id="print">
                <div class="answer">
                    <b>Pop-up 1: </b><br/>
                    <p class="blue">[Correct Answer – ]to validate that the payment request is properly authorized by the appropriate individual and within the authorization limit.</p>
                    <br/>
                    <p>The flowchart (Exhibit A) shows that upon receiving the payment request and approved voucher package, the A/P Lead first reviews the request to validate that the payment request is properly authorized.  Exhibit B shows that the authorization requirements include an authorized personnel for each cost center and an authorization limit for each cost center.</p>
                    <br/><br/>
                </div>

                <div class="answer">
                    <b>Pop-up 2: </b><br/>
                    <p class="blue">[Correct Answer –]the Ingredients cost center, the payment request should have been authorized by Jacque Holmes.</p>
                    <br/>
                    <p>Exhibit B shows the Authorized Personnel Listing by Cost Center effective at the time of the selected transaction.  The only correct option of the answer choices available are that a payment request from the Ingredients cost center should have been authorized by Jacque Holmes.</p>
                    <br/><br/>
                </div>

                <div class="answer">
                    <b>Pop-up 3: </b><br/>
                    <p class="blue">[Correct Answer – ]Key Control No. 2 is an IT Application Control, which will be tested by our Information Technology Team.</p>
                    <br/>
                    <p>Based on the description of this control, it is an application control, not a general control, because this control applies to the processing of individual transactions rather than the overall information system.  Administrative access rights are an example of an application control.</p>
                    <br/><br/>
                </div>

                <div class="answer">
                    <b>Pop-up 4: </b><br/>
                    <p class="blue">[Correct Answer – ]This control is a detective control that provides assurance that unauthorized vendor setups are discovered and corrected on a timely basis.</p>
                    <br/>
                    <p>Based on the description of this control, it is a detective control, not a preventive control, because it occurs monthly and allows the accounting manager to discover and correct any unauthorized vendor setups that may have occurred during the previous month.</p>
                    <br/><br/>
                </div>

                <div class="answer">
                    <b>Pop-up 5: </b><br/>
                    <p class="blue">[Correct Answer – ]then supplies the treasurer with the batch backup information.  From here, the treasurer</p>
                    <br/>
                    <p>The flowchart (Exhibit A) shows that the treasurer prints the checks.  This is a necessary segregation of duties, as the individual approving and recording the transactions in the G/L (A/P Lead) should not be the same as the individual preparing and sending the checks (treasurer).</p>
                    <br/><br/>
                </div>
                
                <div class="answer">
                    <b>Pop-up 6: </b><br/>
                    <p class="blue">[Correct Answer –]using the reconciliation file generated by the bank.</p>
                    <br/>
                    <p>The flowchart (Exhibit A) shows that the reconciliation file is generated by the bank.  An example of a monthly reconciliation is shown in Exhibit C. </p>
                    <br/><br/>
                </div>
            </div>
        </div>
    </div>
</div>

